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Cidras Tech Group to be acquired by West Pharmaceutical Services
Companies merger will benefit customers by adding more services
By MARIALBA MARTINEZ
May 13, 2005
Pennsylvanias West Pharmaceutical Services Inc. (WPS) will acquire the assets of Tech Group, an Arizona-based company with a medical and consumer plastics solutions contract-manufacturing site in Cidra, for $140 million, said Donald Morel, WPS chairman & CEO.
Cidras Tech Group was ranked eighth in the CARIBBEAN BUSINESS 2005 Book of Lists as one of Puerto Ricos largest plastics manufacturers. The companys 128 full-time employees and 150 temporary employees will continue to work with the new company. WPS foresees adding personnel for engineering, automation, and validation systems.
In addition to the Cidra operation, WPS is acquiring Tech Groups contract-manufacturing plants in Arizona, Michigan, Indiana, Mexico, and Ireland. The company anticipates that if combined for all of 2005, Wests U.S. plastics molding business and Tech Groups business will generate sales of about $180 million.
"This merger is a business acquisition based on the advantages the two businesses have, instead of having to cut one business to make the other work," said Morel.
"There are strong synergies between WPS and Tech Group. WPS is a manufacturer of components and systems for injectable-drug delivery. This is a natural overlap with Tech Groups customer base, made up of companies in the healthcare, packaging, and consumer / technology industries."
Tech Group President & CEO Harold Faig added, "Our companies provide services to healthcare and consumer markets and have very little overlap with our customers. WPS has a huge rubber component while we serve the plastics sector. Geographically, it is a match made in heaven since Tech Group has a strong position in the Southwest and WPS in the East. We also complement each other in Europe."
Tech Group Operations Vice President Bill Gerard, who was a former operations vice president in Cidra and now will take over the same position for the new company, said, "Tech Group was one of the first molding companies in the U.S. to use all electric molding machines instead of hydraulic machines. Puerto Rico today is reaping the benefits with an extremely modern, high-technology operation with 35 machines, making it a sizeable plant."
Tech Group will retain its ownership interest in Tech Group Asia, where it operates two mold-injection plants each in China and Singapore, in addition to one plant in the Philippines.
In addition to injectable-drug delivery components and systems, WPS manufactures personal care, food, and beverage market products. Among its customers are leading pharmaceutical, biotechnology, generic-drug, and medical-devices producers. WPS operates from 50 locations throughout North America, South America, Asia, Europe, and Australia.
This Caribbean Business article appears courtesy of Casiano Communications.